EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 31, Problem 11SPPA
To determine
To explain:
The way
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Inflation at lowest rate in 5 years
Inflation rate (percent per year)
In September, inflation in the United Kingdom fell to 1.1% a year, its lowest in 5
years. Analysts expected an inflation rate of 1.3% a year.
1.7-
Source: The New York Times, October 13, 2009
With the unemployment rate at 8 percent and the natural unemployment rate at 6
percent, sketch the short-run Phillips curve and mark on your graph the point which
shows the situation in September. Label the point A.
1.5-
1.3-
The unemployment rate is 8 percent and the natural unemployment rate is 6
percent.
1.1-
Draw a point that shows the unemployment rate and the inflation rate in
September. Label it A.
Draw a point that shows the natural unemployment rate and the expected inflation
0.9
rate. Label it B.
10
12
Unemployment rate (percent of labor force)
Draw the short-run Phillips curve that is consistent with these data. Label it.
>>> Draw only the objects specified in the question.
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Inflation at lowest rate in 5 years
Inflation rate (percent per year)
In September, inflation in the United Kingdom fell to 1.1% a year, its
lowest in 5 years. Analysts expected an inflation rate of 1.3% a year.
1.7-
Source: The New York Times, October 13, 2009
With the unemployment rate at 8 percent and the natural unemployment
rate at 6 percent, sketch the short-run Phillips curve and mark on your
graph the point which shows the situation in September. Label the point
A.
1.5-
1.3-
The unemployment rate is 8 percent and the natural unemployment rate
is 6 percent.
1.1-
Draw a point that shows the unemployment rate and the inflation rate in
September. Label it A.
0.9+
4
8
10
12
Draw a point that shows the natural unemployment rate and the expected
Unemployment rate (percent of labor force)
inflation rate. Label it B.
>>> Draw only the objects specified in the question.
Draw the short-run Phillips curve that is consistent with these data. Label
it.
of
Economics
Complete the graph
Inflation rate
Unemployment rate
(percentage)
12
(percent per year)
4.
15
3
5
2
I FIGURE 15.1
1. The table above has data on the inflation rate
and the unemployment rate.
a. Using the data, label the axes and plot the
short-run Phillips curve in Figure 15.1. Label the
curve SRPC.
b. What is the effect of a decrease in the
unemployment rate from 8 percent to 5 percent?
Show the effect in Figure 15.1.
c. How does your answer to question (b) indicate
the presence of a tradeoff?
Chapter 31 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 31 - Prob. 1SPPACh. 31 - Prob. 2SPPACh. 31 - Prob. 3SPPACh. 31 - Prob. 4SPPACh. 31 - Prob. 5SPPACh. 31 - Prob. 6SPPACh. 31 - Prob. 7SPPACh. 31 - Prob. 8SPPACh. 31 - Prob. 9SPPACh. 31 - Prob. 10SPPA
Ch. 31 - Prob. 11SPPACh. 31 - Prob. 1IAPACh. 31 - Prob. 2IAPACh. 31 - Prob. 3IAPACh. 31 - Prob. 4IAPACh. 31 - Prob. 5IAPACh. 31 - Prob. 6IAPACh. 31 - Prob. 7IAPACh. 31 - Prob. 8IAPACh. 31 - Prob. 9IAPACh. 31 - Prob. 10IAPACh. 31 - Prob. 1MCQCh. 31 - Prob. 2MCQCh. 31 - Prob. 3MCQCh. 31 - Prob. 4MCQCh. 31 - Prob. 5MCQCh. 31 - Prob. 6MCQ
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